Lenders using AI to automate loan applicant verification and ancillary product contracts, reduce fraud and bias, and speed funding times.
Lenders are increasingly turning to technology to speed up loan funding times, reduce operating expenses, and improve profitability. Artificial Intelligence (AI) is one such technology being used to automate the review of loan documents, calculate income, detect fraud, and reduce bias in lending decisions.
AI technology can extract and classify documents, programmatically calculate income in accordance with lender policies, and flag fraudulent documents. This reduces the manual work required to review deal jackets and ancillary product contracts, leading to faster funding times and improved customer experience. AI can also detect relationships in data and automate decision-making based on model predictions of loan profitability, reducing the effect of bias.
The Consumer Financial Protection Bureau is monitoring the situation to ensure that AI models are not as biased, or even more biased, than humans. It is important for those building the software systems to ensure this is the case.
Leading lenders are using AI to increase their profitability, fund loans faster, reduce operating expenses, mitigate fraud, and enable employees to focus on building deep relationships with their customers. AI can also help reduce bias in lending decisions and foster a more inclusive economy.
Adine Deford is vice president of marketing at Informed.IQ, with more than 25 years of technology marketing experience. She is helping to bring AI technology to lenders, to improve the customer experience and reduce bias in lending decisions.